S.W.O.T analysis is a planning tool that is used in organizations and individuals when
identifying opportunities for growth in an organization and minimization of possible threats. It
aids an organization to be able to plan and achieve both short-term and long-term goals. This
enables the business to plan for its future direction to maximize opportunities to make a profit.
S.W.O.T analysis is used by planning strategies that will support business in placing it in the
front line above its competitors. S.W.O.T analysis is done by dividing a matrix into four parts,
each box is labeled, and a conclusion is drawn. S.W.O.T is used in an organization to measure its
strengths and weaknesses. It is also applied in predicting threats and optimizing the opportunities
a business has to grow and to predict the future of the business (Ahmadi, Dileepan & Wheatley,
2016). The analysis helps an organization to identify its success component that will take the
business to the next level.
The first category of the strategic guidance process involves analysis of the situation,
where it provides the basis in the creation of the organization's purpose. They also include
analysis and evaluating an organization's environment. Therefore, situation analysis is conducted
through observation of internal employees and their interactions with each other. On the other
hand, surveys and one-on-one discussions are also conducted to understand more about the
elements within the organization. Surveys also aid in the understanding of the relationship that
an organization has with its customers, suppliers, and other competitors.
The second category of strategic guidance is the formulation of the plan. Strategy
formulation is coming up with strategies that help in designing the company business approach.
Strategy formulation is further divided into three levels. The first level is administrative, where it
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includes the day-to-day organization’s departments. The organizational level consists of the day-
to-day running of office activities. Human resource is in charge of hiring, promotion, and firing
The second level in designing strategy is competitive under strategy formulation. This is
the level where the organization has to know who their competitors are. The third level of
strategy formulation is corporate. This level involves long-term goals of the organization, which
include plans about the future, as well as whether the organization might need to merge with
other organizations or exist on its own.
The third element of the strategy management process is strategy implementation. It
comprises putting into action the strategy that has been formulated. The element focuses more on
solving the harder problems first and focusing on the easier to be solved problems later. The
fourth element of strategic management is assessing each level of the strategy. This involves the
bearing the strategy has within the organization and its direct impact on employees.
Corporate governance is a practice where a company is ruled by either a board of
directors or shareholders. It ensures that there is visibility in what is happening within the
organization; hence, there is an openness among the shareholders and board of directors. It also
improves the organization's performance (Akbar, 2015). Besides, it guarantees that the internal
company rules and policies adhere to the latter.
S.W.O.T analysis is essential in the process of determining organizations' current position
to aid in designing future strategies. Corporate governance is a sound system for an organization
to implement since it helps in achieving long term goals. It also ensures company growth is met,
and investors have confidence in the organization where they put in their money. Moreover, it is
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important in the continuous performance improvement and individual accountability in case of
mismanagement of resources.
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Ahmadi, M., Dileepan, P., & Wheatley, K. K. (2016). SWOT analysis of big data. Journal of
Education for Business, 91(5), 289-294.
Akbar, A. (2015). The role of corporate governance mechanism in optimizing firm performance:
A conceptual model for the corporate sector of Pakistan. Journal of Asian Business